Country profile: Ecuador

Ecuador, which means equator in Spanish, began its modern history as the Republic of the Equator, one of three countries that emerged from the collapse of Grand Colombia in 1830 (the others being Colombia and Venezuela).

09 May 2005 07:24 GMT

In the first half of the 20th century, Ecuador lost territory in a series of conflicts with its neighbours.

In the 1960s, foreign interests developed Ecuador's oil resources and in 1972 a military government seized power.

They used the booming oil economy to industrialise and begin a programme of land reform.

Ecuador returned to democracy in 1979, but by 1982 the economy was failing and a series of presidents failed to bring about stabilisation.

European descendents account for only about 10% of the population and are predominantly wealthy landholders who are largely responsible for the country's unstable political turmoil.

In 199,5 a border war broke out with Peru and this was not resolved until 1999.

Well organised illegal drug-trafficking operations inside Colombia have caused more than 20,000 refugees to flee into Ecuador.

The Ecuadoran flag

Tumultuous and unstable politics has contributed to Ecuador becoming a significant transit point for drug-trafficking from both Colombia and Peru. The adoption of US currency has made Ecuador an attractive area for money laundering.

This hot, humid country is home to snow-capped peaks, fertile valleys and tropical jungle.

Mount Cotopaxi in the Andes is the highest active volcano in the world.

Earthquakes are frequent and often disastrous. In 1949, the city of Ambato was levelled to the ground.

The Galapogos Islands located 1000km of the west coast of South America are part of the Republic of Ecuador.

The oldest of these volcanic islands is believed to be more than four million years old, while the youngest ones are still in the process of being formed.

Charles Darwin's studies of the Galapogos Islands lead to his theories of natural selection. Unesco recognised the islands as a World Heritage Site in 1978 and this was extended to include a marine reserve in 2001. (see:

Political pressure groups and leaders: Confederation of Indigenous Nationalities of Ecuador or CONAIE, Luis Macas, president; Coordinator of Social Movements or CMS, F Napoleon Santos; Federation of Indigenous Evangelists of Ecuador or FEINE, Marco Murillo, president]; National Federation of Indigenous Afro-Ecuatorianos and Peasants or FENOCIN, Pedro De La Cruz, president; Popular Front or FP, Luis Villacis.

Economy: Although Ecuador has substantial petroleum resources it has been plagued by economic decline in recent years. In 1999, the banking system collapsed and this paved the way for the adoption of the US dollar as the state currency. This somewhat stabilised the economy and growth returned to its pre-crisis levels. Economic reform has been minimal however, and Ecuador is vulnerable to and dependent upon petroleum price fluctuations.